Please use this identifier to cite or link to this item:
http://dspace.mediu.edu.my:8181/xmlui/handle/10261/1765| Title: | The optimal behaviour of firms facing stochastic costs |
| Keywords: | Firm behaviour Portfolio theory Risk aversion Uncertainty |
| Description: | This paper aims at assessing the optimal behavior of a firm facing stochastic costs of production. In an imperfectly competitive setting, we evaluate to what extent a firm may decide to locate part of its production in other markets different from which it is actually settled. This decision is taken in a stochastic environment. Portfolio theory is used to derive the optimal solution for the intertemporal profit maximization problem. In such a framework, splitting production between different locations may be optimal when a firm is able to charge different prices in the different local markets. R. Nicolini research is supported by Ramón y Cajal contract of the Spanish Ministerio de Ciencia y Tecnología and by Barcelona Economics Program of CREA. |
| URI: | http://dspace.mediu.edu.my:8181/xmlui/handle/10261/1765 |
| Other Identifiers: | http://hdl.handle.net/10261/1765 |
| Appears in Collections: | Digital Csic |
Files in This Item:
There are no files associated with this item.
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.